For businesses considering expanding into New Zealand, getting started can be a daunting task. There are unfamiliar laws to familiarise themselves with, visas to secure, networks to create and new markets to penetrate. It’s no wonder many businesses put expanding into New Zealand in the “too hard” basket.
But expanding into New Zealand doesn’t have to be difficult. In fact, it’s arguably never been easier than it is today because through enlisting the help of a PEO, you can get started without having to set up a local entity for onboarding.
PEOs aren’t for every business; there are advantages and disadvantages of engaging one to help employ staff and start operating in a new country.
What is a PEO?
A Professional Employer Organisation supports small-to-medium enterprises (SMEs) by outsourcing their human resource requirements. These high-value services can help your company pay wages, offer employee support and adhere to tax laws. This gives you more freedom to focus on the things that matter – business growth.
ANZPEO operates throughout the entire country working with businesses of all shapes and sizes as partners in their New Zealand expansion.
With companies often looking to set up shop in capital cities, you can get started without having to set up a local entity for onboarding.
Why Choose ANZPEO?
Research is a critical aspect of locating the right PEO for your company, as they will be taking on an integral position within your business. Deciding what kind of PEO involves identifying your company’s needs is an essential step to take. What services can be outsourced? Is payroll required? Do I need onboarding systems taken care of? Will you be sourcing employees abroad yourself, or do you want a PEO to do it for you? These are all vital questions that need answers before selecting the right PEO for your New Zealand business.
ANZPEO comes ready to go with a range of HR management systems, allowing them to take control of routine tasks to give you more time to focus on business operations. A PEO service is more cost-effective and can more easily contend with employee regulations in New Zealand, once again saving you the hassle and effort of establishing a local entity in New Zealand to hire legally. A PEO service is integral to keeping your focus on your business’s core components, alongside a well-managed overseas employee group.
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Co-Employment
PRO: Shared Liability
Because of the way PEOs work, you are technically leasing your employees, making you a co-employer of your workers. This incorporates all your company’s employees under ANZPEO’s tax ID, allowing them to share in risk and liability issues. With a team of professionals on call, ANZPEO efficiently deals with expected and unexpected elements of the employment process.
CON: Control
Relinquishing control can be difficult for some employers. Adding an extra set in the communication process can be inefficient, and must be considered in regards to your company culture.
2. Payroll and Taxes
PRO: Productivity
Eliminating manual administrative processes can allow HR professionals to be more productive in their role. While some PEOs may only process payroll, ANZPEO offers comprehensive human resource management as required, from tax obligations to annual reporting.
CON: Compliance
Failure to properly remit or file taxes can leave your company vulnerable to fines or penalty for non-compliance. When it comes to the ever-changing legal and regulatory landscape, ANZPEO keeps on top of developments and changes, providing the peace of mind that a business needs to be compliant with the relevant local rules and regulations.
3. Operational Costs
PRO: Overhead Cost Reduction
Eliminating the need to hire more staff for HR services means fewer wages for things like payroll processing or onboarding. It’s critical you breakdown the costs associated to ensure ANZPEO can save reduce your overhead costs.
CON: Fees
While wages may go down, fees will go up when you choose to use a PEO. PEO companies generally charge fees one of three ways:
- A percentage of payroll
- A flat fee per payslip or employee
- A flat minimum amount per pay period
Costs can range anywhere from 2% to 11% of your payroll, depending on what services ANZPEO are providing.
4. Accessibility
PRO: HR Services
Access to services that may be out of reach of your company budget means you can provide training, onboarding and recruitment services usually reserved for larger businesses.
CON: Accessing Information
Passing on the task of human resources to a PEO means you may not be privy to your employee’s information. With minimal access and visibility, CFOs, HR managers and employees aren’t able to access company data with ease. Furthermore, communications between the company and PEO may not be as swift as an internal process. Needing to contact a third party may make a “hands-off” approach more difficult than doing it yourself.
Are you considering expanding into New Zealand?
Contact ANZPEO today to find out how we can help you do so efficiently and without the need of establishing a legal entity.
